NVR Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 28 January 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Quarterly net income fell 20 percent: Fourth-quarter net income was $363.8 million, or $121.54 per diluted share, versus $457.4 million, or $139.93, a year earlier. Net income fell 20 percent and diluted EPS fell 13 percent. Source
• Full-year earnings per share down 14 percent: Full-year net income was $1.34 billion, down 20 percent. Full-year diluted EPS was $436.55, down 14 percent from $506.69 in 2024. Source
• Quarterly homebuilding income fell 22 percent: Homebuilding income before tax was $411.5 million in the fourth quarter, down 22 percent from the prior-year quarter. Source
• Quarterly mortgage income rose 24 percent: Mortgage banking income before tax was $57.2 million in the fourth quarter, up 24 percent from $45.9 million a year earlier. Source
• Quarterly gross margin fell to 20.4%: Fourth-quarter gross profit margin was 20.4%, against 23.6% a year earlier. Source
• Quarterly settlements down 8 percent: Fourth-quarter settlements were 5,668 units, down 8 percent. The average settlement price rose 3 percent to $464,900. Source
• Backlog down 15 percent in units: Backlog at December 31, 2025 was 8,448 units, down 15 percent, and $4.01 billion, down 16 percent, versus the prior year-end. Source

“Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges, and contract land deposit impairments totaling approximately $35.7 million.”

NVR Inc., press release

What changed from last quarter

• New: Homebuilding footprint is now 37 metropolitan areas, up from 36 in the third-quarter release. Source

Fourth quarter and full-year results

• Quarterly net income fell 20 percent: Fourth-quarter net income was $363.8 million, or $121.54 per diluted share, versus $457.4 million, or $139.93, a year earlier. Net income fell 20 percent and diluted EPS fell 13 percent. Source
• Full-year earnings per share down 14 percent: Full-year net income was $1.34 billion, down 20 percent. Full-year diluted EPS was $436.55, down 14 percent from $506.69 in 2024. Source
• Revenue declined in both periods: Fourth-quarter consolidated revenues were $2.71 billion, against $2.85 billion. Full-year revenues were $10.32 billion, down 2 percent from $10.52 billion. Source

Homebuilding segment performance

• Quarterly homebuilding income fell 22 percent: Homebuilding income before tax was $411.5 million in the fourth quarter, down 22 percent from the prior-year quarter. Source
• Full-year homebuilding income down 18 percent: Full-year homebuilding income before tax was $1.61 billion, compared with $1.96 billion in 2024. Source
• Regional fourth-quarter orders mixed: Fourth-quarter new orders were 1,869 units in Mid Atlantic against 1,726, 544 in North East against 453, 965 in Mid East against 1,024, and 1,573 in South East against 1,591. Source

“Our effective tax rate for the three and twelve month periods ended December 31, 2025 was 22.4% and 24.0%, respectively, compared to 20.1% and 20.5% for the three and twelve month periods ended December 31, 2024, respectively.”

NVR Inc., press release

Mortgage banking segment

• Quarterly mortgage income rose 24 percent: Mortgage banking income before tax was $57.2 million in the fourth quarter, up 24 percent from $45.9 million a year earlier. Source
• Higher gains on loan sales drove increase: The company attributed the quarterly mortgage income increase primarily to higher secondary marketing gains on sales of loans. Source
• Loan production down 11 percent: Closed loan production was $1.51 billion in the fourth quarter, down 11 percent. Full-year production fell 4 percent to $6.04 billion, and the capture rate was 84 percent against 86 percent. Source

Margins, costs and tax rate

• Quarterly gross margin fell to 20.4%: Fourth-quarter gross profit margin was 20.4%, against 23.6% a year earlier. Source
• Lot costs and pricing pressure cited: Management cited higher lot costs, pricing pressure from affordability challenges, and contract land deposit impairments of about $35.7 million as drivers of the quarterly margin decline. Source
• Full-year gross margin at 21.2%: Full-year gross profit margin was 21.2%, against 23.7% in 2024. Full-year contract land deposit impairments were about $75.9 million. Source
• New-order average price down 3 percent: The average sales price of new orders was $454,200 in the fourth quarter, down 3 percent from a year earlier. Source
• Tax rate rose on smaller option benefit: The effective tax rate was 22.4% for the quarter and 24.0% for the year, against 20.1% and 20.5%. The company attributed the rise to lower excess tax benefits from stock option exercises. Source

Demand, orders and backlog

• Quarterly net orders rose 3 percent: Fourth-quarter new orders were 4,951 units, up 3 percent from 4,794 units a year earlier. Source
• Quarterly cancellation rate eased slightly: The fourth-quarter cancellation rate was 16.6%, against 16.9% a year earlier. The full-year rate was 17.0%, against 14.2% in 2024. Source
• Quarterly settlements down 8 percent: Fourth-quarter settlements were 5,668 units, down 8 percent. The average settlement price rose 3 percent to $464,900. Source
• Full-year net orders fell 10 percent: Full-year new orders were 20,410 units, down 10 percent from 22,560 units in 2024. Source
• Backlog down 15 percent in units: Backlog at December 31, 2025 was 8,448 units, down 15 percent, and $4.01 billion, down 16 percent, versus the prior year-end. Source

Capital, cash and shareholder returns

• Share repurchases continued through 2025: Full-year repurchases were 243,082 shares, against 256,871 in 2024. Fourth-quarter repurchases were 64,904 shares. Source
• Homebuilding cash balance declined: Homebuilding cash and cash equivalents were $1.88 billion at year-end, against $2.56 billion a year earlier. Source
• Shares outstanding fell at year-end: Shares outstanding at the end of the period were 2,799,387, against 3,011,644 a year earlier. Source

Land, lots and active communities

• Lots controlled rose to 180,100: Lots controlled at the end of the period were 180,100, against 162,400 a year earlier. Source
• Contract land deposits increased: Contract land deposits, net, were $851.5 million at year-end, against $726.7 million at December 31, 2024. Source
• Average active communities up in quarter: Average active communities were 450 in the fourth quarter, against 426. For the full year they were 432, against 427. Source

Figures management reported

Risks management discussed

• Demand: Pricing pressure from continued affordability challenges and higher lot costs weighed on gross margin in the quarter. Source
• Financial: Contract land deposit impairments totaled about $75.9 million for the full year, reducing gross profit margin. Source
• Financial: A smaller excess tax benefit from stock option exercises raised the effective tax rate. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.